Algerian Arms Deal Brings Russia $7.5 billion, Gas Market Leverage
August 20/15: Russia intends to deliver another pair of Mil Mi-26T2 heavy lift helicopters to Algeria later this year, with another two following in early 2016, according to Russian media reports . The first two helicopters were delivered to the North African country in July, with reports indicating that a second contract – covering eight further helicopters of the type – is likely to complete deliveries by the end of 2017, bringing the total of heavy lift helicopters operated by Algeria to 14. The Mi-26T2 re-entered series production in May, with Algeria also reported to be ordering attack helicopters from Russia.
A February 2006 report noted that a $4 billion arms sale was brewing between Algeria and Russia involving fighter aircraft, tanks, and air defense systems, with the possibility of additional equipment. Those options came through the following month, as a high-level Russian delegation in Algeria closed up to $7.5 billion worth of arms contracts. The Algerian package remains post-Soviet Russia’s largest single arms deal. As an instructive comparison, annual Russian weapons export orders from all customers were just $5-6 billion per year in 2004 and 2005.
Reuters South Africa quoted Rosoboronexport chief Sergei Chemezov as saying that “Practically all types of arms which we have are included, anti-missile systems, aviation, sea and land technology.” The actual contents of that deal were murky, though DID offers triangulation among several sources to help sort out the confusion. A number of these deals have evolved over time, and other public-source information has helped to sharpen the picture a bit. The subsequent crash of Algeria’s MiG-29 deal, and its ripple effects, are also discussed.
The Algerian Package: What’s the Big Deal?
Structuring the Deal: Anatomy of a Euro-Squeeze
Contracts and Key Events
2010 – 2014
2006 – 2009
Appendix A: Algeria’s Appetite for Advanced Arms
Appendix B: Russia’s Arms Industry Woes
Appendix C: Additional Readings & Sources
News & Views
Fill in the secure form below to activate your subscription right away (or pick another plan)